Climate technology – invest now to achieve sustainability goals

Climate technology, or climate tech, refers to innovative solutions and technologies designed to mitigate the impacts of climate change and reduce greenhouse gas emissions. For example, renewable energy and carbon capture/storage technologies that reduce CO2 in our atmosphere.

According to a new report, it’s no longer a future bet — it is a present-day imperative. Organisations across every sector are recognising its role in achieving net zero and sustainability goals. But readiness to act varies widely. As COP30 takes place in Brazil, a report from ACCA – The climate tech forecast. A guide to driving value across organisations – shows both the momentum and the challenges in embedding climate technologies, with accountants playing a pivotal role in bridging the gap between aspiration and action.

Climate technology is transforming industries, creating opportunities, and driving investment. While only 15 per cent of organisations currently invest with clear financial or strategic rationale, growing interest is seen in cautious investment (42 per cent) and non-financial returns like ESG and brand value (21 per cent). Energy efficiency, carbon compliance, and sustainable supply chains are leading adoption, with green finance, carbon offsetting, and climate risk planning emerging as strategic priorities.

Accountants play a pivotal role — guiding investment, embedding climate into strategy, and ensuring transparent reporting. The research and roundtable insights highlight challenges around data readiness, long-term ROI, and internal capabilities, but also show that AI and robust frameworks can unlock measurable value.

Emmeline Skelton, head of sustainability at ACCA said, "These investments often involve high upfront costs, long payback periods, and benefits that are more environmental or strategic than immediately financial. However, the true return of climate technology lies in strengthening resilience, reducing long-term risk, and creating sustainable value in the shift to a low-carbon economy."

She emphasised the opportunity for accountants: "Climate tech investments can take time to pay off, but finance teams are central in helping organisations see beyond quick returns. By tackling the data crisis head-on, accountants can unlock and prove the measurable, long-term value of these essential technologies."

The research underscores a significant readiness gap. Data remains the single biggest barrier: 72 per cent of organisations struggle with fragmented or inconsistent information, weak governance, or insufficient knowledge. Even when data is collected, 20 per cent say they cannot interpret outputs, while 15 per cent cannot measure ROI from investments.

Government support — through policy, tax incentives, and skills development — is essential, with 77 per cent of organisations citing it as a key driver. By combining strong data, strategic oversight, and supportive public policy, accountants can help organisations scale climate technology, rethink ROI, and create long-term sustainable value.

Interconnected sustainability, financial information vital

Additionally, new research from ACCA revealed that insights on how business operations impact stakeholders are essential for organisations to be resilient and thrive.

Sustainability impacts everyone who provides and uses resources – it can threaten organisation resilience and provide opportunities for sustainable profits. Many respondents struggle to understand the organisation’s vital resources (25 per cent and the information needs of different stakeholders (33 per cent).

Sustainability reporting: Track your progress is the latest in a series of insights and guidance designed to create sustainability-related information and reports. Over 1,000 respondents from 113 jurisdictions were surveyed, two interviews conducted, and eight global roundtables convened to assess organisations’ readiness to create and use sustainability information.

Current readiness across systems, processes, and people remains inadequate, highlighting significant challenges that must be addressed. Poor leadership commitment undermines senior-level strategic decision-making, negatively impacting sustainability strategy, investments in systems and processes, and data governance.

Sharon Machado, head of sustainable business at ACCA said: "Organisation leaders must look ahead to understand and act upon the risks most threatening their organisation’s resilience and the ability to create sustainable value."

The research findings emphasise addressing what matters most to the stakeholders who provide resources – when those stakeholders or their resources are affected, there are often direct financial consequences. To help organisations and professionals better create and use sustainability information, the report makes ten recommendations:

1. Move beyond compliance

2. Champion sustainability

3. Prioritise globally relevant standards

4. Leverage regulatory reporting ecosystems

5. Know your business end to end

6. Bake sustainability into stakeholder management

7. Be proactive

8. Build agile systems focused on the end users

9. Build a flexible resourcing model

10. Collaborate boldly across industries and regions